ALLENTOWN, Pa. — CrossAmerica Partners LP has entered into a definitive agreement to acquire certain assets of Community Service Stations Inc. The assets consist of wholesale fuel supply contracts to 39 dealer-owned locations, 34 subjobber accounts and two commission locations (one fee based and one lease).
The supply contracts include approximately 75 million gallons of fuel annually through such fuel brands as Exxon Mobil, Shell, Gulf and others.
“We are excited to acquire these attractive assets from one of the leading wholesale distributors in the Boston area,” said President and CEO Charles Nifong. “This acquisition expands our fuels business in the New England market with new dealers and strengthens our relationship with several of our major fuel supplier partners.”
- CrossAmerica Partners is No. 32 on CSP’s 2022 Top 202 ranking of U.S. convenience-store chains by number of company-owned retail locations.
The acquisition is subject to customary conditions to closing. CrossAmerica currently expects the transaction to close during fourth-quarter 2022. It anticipates financing the acquisition with cash on hand or undrawn capacity under the CrossAmerica revolving credit facility. The partnership expects the acquisition to be immediately accretive to distributable cash flow to limited partners.
The board of directors of the general partner of CrossAmerica approved the terms of the transactions, which the companies did not disclose.
Matrix Capital Markets Group Inc., Richmond, Va., served as the exclusive financial advisor to Community Service Stations, Framingham, Mass.
George Riley Sr. and a partner founded Community Service Stations in Boston in 1918.
In early 2021, in a $263 million deal, CrossAmerica acquired 106 company-operated sites from 7-Eleven that 7-Eleven sold as part of the divestiture process in connection with its acquisition of Speedway from Marathon Petroleum Corp. In May 2021, CrossAmerica began rebranding the stores in in Massachusetts, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee and Virginia as Joe’s Kwik Mart. Other company-owned retail brands include Hy-Miler Convenience in Ohio, Uni-Mart in Ohio and Pennsylvania, Rocky Top Market in Tennessee, Stop In Food Stores in Virginia and West Virginia, One Stop in West Virginia and Zoomerz in Tennessee.
Allentown, Pa.-based CrossAmerica Partners is a wholesale distributor of motor fuels, convenience-store operator and owner and lessor of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is indirectly owned and controlled by entities affiliated with Joseph V. Topper Jr., the founder of CrossAmerica Partners and a member of the board of the general partner since 2012.
Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,750 locations and owns or leases approximately 1,150 sites. With a geographic footprint covering 34 states, the partnership has well-established relationships with several major oil brands, including ExxonMobil, BP, Shell, Sunoco, Valero, Gulf, CITGO, Marathon and Phillips 66. CrossAmerica Partners ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and in the top 10 for additional brands.
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